MARS Butterfly Strategy
MARS (Roundhill ETF Trust - Roundhill Space & Technology ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
MARS targets pure-play companies worldwide involved in the space economy and its enabling technologies. Such companies derive at least 50% of their revenue from activities such as the development, manufacturing, or operation of rocket launch systems, spacecraft and satellites, space-related defense systems, and communications infrastructure. This also includes supporting technologies such as network infrastructure, AI services, software and IT services, semiconductor production, and advanced military technology. The adviser constructs the portfolio using a proprietary thematic-relevance methodology that analyzes company disclosures, financial reports, and industry research to assess each companys connection to the growth of the commercial space economy. The strategy is based on the belief that significant growth opportunities exist in space infrastructure as it becomes increasingly integrated into global economic systems. The fund rebalances its holdings at least quarterly.
MARS (Roundhill ETF Trust - Roundhill Space & Technology ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $44.9M, a beta of 4.86 versus the broader market, a 52-week range of 22.29-45.92, average daily share volume of 74K, a public-listing history dating back to 2026. These structural characteristics shape how MARS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.86 indicates MARS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a butterfly on MARS?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
MARS snapshot
As of September 29, 2026, spot at $25.27, ATM IV 164.20%, IV rank 34.66%, expected move 47.07%. The butterfly on MARS below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this butterfly structure on MARS specifically: MARS IV at 164.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 47.07% (roughly $11.90 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MARS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MARS should anchor to the underlying notional of $25.27 per share and to the trader's directional view on MARS etf.
MARS butterfly setup
The MARS butterfly below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MARS at $25.27 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MARS chain at a 80-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 MARS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.00 | $2.80 |
| Sell 2 | Call | $25.00 | $3.08 |
| Buy 1 | Call | $27.00 | $1.80 |
MARS butterfly risk and reward
- Net Premium / Debit
- +$155.00
- Max Profit (per contract)
- $244.41
- Max Loss (per contract)
- $55.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 4.444
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
MARS butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on MARS. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$155.00 |
| $5.60 | -77.9% | +$155.00 |
| $11.18 | -55.7% | +$155.00 |
| $16.77 | -33.6% | +$155.00 |
| $22.35 | -11.5% | +$155.00 |
| $27.94 | +10.6% | +$55.00 |
| $33.53 | +32.7% | +$55.00 |
| $39.11 | +54.8% | +$55.00 |
| $44.70 | +76.9% | +$55.00 |
| $50.29 | +99.0% | +$55.00 |
When traders use butterfly on MARS
Butterflies on MARS are pinning bets - traders use them when they expect MARS to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
MARS thesis for this butterfly
The market-implied 1-standard-deviation range for MARS extends from approximately $13.37 on the downside to $37.17 on the upside. A MARS long call butterfly is a pinning play: it pays maximum at the middle strike if MARS settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current MARS IV rank near 34.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the butterfly thesis on MARS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MARS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MARS-specific events.
MARS butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. MARS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MARS alongside the broader basket even when MARS-specific fundamentals are unchanged. Always rebuild the position from current MARS chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on MARS?
- A butterfly on MARS is the butterfly strategy applied to MARS (etf). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With MARS etf at $25.27 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed MARS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MARS butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the MARS butterfly priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 164.20%), the computed maximum profit is $244.41 per contract and the computed maximum loss is $55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MARS butterfly?
- The breakeven for the MARS butterfly priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The MARS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on MARS?
- Butterflies on MARS are pinning bets - traders use them when they expect MARS to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current MARS implied volatility affect this butterfly?
- MARS ATM IV is at 164.20% with IV rank near 34.66%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.